Financial Markets
Top stories summarized by our editors
12/13/2017

Deutsche Bank and BNP Paribas analysts say European Central Bank President Mario Draghi might disturb markets Thursday by delivering a more hawkish message than expected. At other major banks, analysts expect the ECB to stay the course, though a Citigroup strategist says Draghi could "perform his Jedi mind trick" to prevent market volatility.

12/13/2017

As investors await Federal Reserve Chair Janet Yellen's expected announcement of a final interest-rate increase this year, they will be more interested in any hints on the pace of rate increases in 2018 and the central bank's forecast for how proposed tax cuts would affect the economy. "While the tax package is not a game changer, it does add more confidence that the Fed can keep going" with rate increases, said Brett Ryan, senior US economist at Deutsche Bank Securities.

12/13/2017

US Trade Representative Robert Lighthizer denounced other members of the World Trade Organization at a ministerial meeting in Argentina for turning to litigation to pursue trade objectives. He said some countries believe they will "gain concessions through lawsuits that they could never get at the negotiating table."

12/13/2017

The search for yield has revived UK securitisations, but the products are susceptible to volatility and are likely to be adversely affected by Brexit, experts say.

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Brexit
12/13/2017

ED&F Man Capital Markets is benefiting from banks' decision to hold off on clearing bitcoin futures by signing 35 hedge funds, proprietary-trading firms and others and negotiating with at least six. The brokerage's Brooks Dudley says adding so many clients for one product is unusual.

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hedge funds
12/13/2017

Estimates have decreased for the number of bank staff leaving London because of Brexit. Fresh research sets the number at 6% of the total, or fewer than 4,600 positions.

12/13/2017

Economists were caught off guard when UK inflation jumped to the highest rate in almost six years in November. Data show an annual rate of 3.1% for consumer price inflation.

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Reuters
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inflation rate
12/13/2017

The European Banking Federation plans to revise the European master agreement to align it more closely with recent legislation, such as the European Market Infrastructure Regulation, particularly regarding over-the-counter derivatives. Market participants and financial lawyers have been urging the update, saying Brexit particularly demands it.

12/13/2017

The number of systematic internalisers will fall sharply once Europe's revised Markets in Financial Instruments Directive takes effect, says Patricia Shin, managing director of brokerage Kepler Cheuvreux. Shin predicts that a decline in research payments will prompt the demise of many registered SIs, which stand at more than 80, and that MiFID II will push trading away from dark pools into regulated markets.

12/13/2017

The People's Bank of China has listed 40 online platforms for currency trading that might be operating illegally because they lack regulatory approval. The central bank has ordered nonbank payment services to stop handling transactions for the platforms.

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Asia Times
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Bank of China, central bank, nonbank